Pakistani textile firm Sapphire Fibres joins race for IESCO privatisation
- Company may form a consortium once the approval is granted, says IESCO
Sapphire Fibres Limited’s board has approved the company’s participation in the privatisation process of Islamabad Electric Supply Company (IESCO).
The listed textile manufacturer disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“Sapphire Fibres Limited obtained the Request for Statement of Qualification as amended or supplemented from time to time (RSOQ) issued by the PC, for the divestment of IESCO through privatisation,” read the notice.
“The Board of Directors of the company has approved participation in the transaction, and as at the date hereof the company has not assumed any binding obligation in this respect, which remains subject to pre- qualification by the PC and to all requisite corporate and regulatory approvals.
“The company may form a consortium once the approval is granted,” it added.
After Nishat Group, Sapphire Fibres joins race for FESCO privatisation
The privatisation of IESCO is part of a broader government initiative to privatise several power distribution companies (DISCOs) to reduce transmission losses, improve recovery, and enhance the quality of service delivery.
In May, the government invited Expressions of Interest (EOIs) from local and foreign investors for the privatisation of FESCO, GEPCO, and IESCO, offering 51% to 100% shareholding with management control. The deadline for EOI submission for IESCO was set for September 7, 2026.
Following this, the PC Board in July recommended that the Cabinet Committee on Privatisation (CCoP) approve restructuring plans and schemes of arrangement for FESCO, GEPCO, and IESCO. A government-owned Special Purpose Vehicle (SPV) will be established to carve out selected assets and liabilities to create a commercially viable transaction structure.
Privatisation of three DISCOs begins in last quarter 2026
The CCoP approved the restructuring plan for FESCO, GEPCO, and IESCO. Under this plan, selected assets (including land) and certain liabilities (post-retirement benefits of already retired employees) will be transferred to a government-owned SPV, while benefits for current employees remain with the DISCOs.
Last month, the deadline for EOI submission for IESCO was extended to September 21, 2026, to allow more time for potential investors.
IESCO reported a decline in line losses from 8.75% to 7.6% during the last two financial years.